Mr. Jay McMillan reports

CHRISTINA LAKE CANNABIS ANNOUNCES CREDIT FACILITY

Christina Lake Cannabis Corp. has entered into a secured credit facility with an entity controlled by Salvatore Milia, a director of the company, pursuant to which the lender has agreed to make available to the company a revolving line of credit of up to $1.5-million. The new facility has a term of two years from the date of the agreement, bears interest at a rate of 14 per cent per annum on outstanding amounts and is repayable on demand by the lender with 90 days of notice by the lender to the company. Additionally, the company may repay the new facility at any time prior to the end of the term without penalty. The new facility is secured through a second mortgage on the company's property at 775 Highway 395, Christina Lake, British Columbia, and a general security agreement. The new facility is not convertible into any other securities of the company.

The company also announces that its previous secured credit facility of up to $1.5-million with an entity controlled by Mr. Boychuk, a director of the company, has been repaid in full.

As Mr. Milia is a director of the company and therefore a related party of the company pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, the new facility constitutes a related party transaction. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(b), respectively, as the company is not listed on a specified market under MI 61-101, the fair market value of the new facility does not exceed $2.5-million and the new facility was approved by at least two-thirds of the independent directors of the company.

The company did not file a material change report in respect of the new facility more than 21 days before entering into the new facility, as the details of the new facility were not settled until shortly prior to closing and the company wished to complete the transaction on an expedited basis for sound business reasons. The company considers this to be reasonable in the circumstances.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act with a standard cultivation licence and corresponding processing amendment from Health Canada, as well as a research and development licence. Christina Lake Cannabis' facilities consist of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction, and a 342-acre property, which includes approximately 100 acres of licensed outdoor grow space, greenhouses and a dry room. The company focuses its production on creating high-quality outdoor flower, extracts and distillate for its B2B (business-to-business) client base.

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